Compromise of 1790

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The Compromise of 1790 was a pivotal political deal in early U.S. history in which Alexander Hamilton, Thomas Jefferson, and James Madison agreed to secure federal assumption of state debts in exchange for locating the national capital along the Potomac River.

Aliases (1)

Statements (47)
Predicate Object
instanceOf agreement
historical event
political compromise
appliesToJurisdiction federal government of the United States
chronologyWithin First United States Congress
country United States of America
describedBySource Thomas Jefferson’s writings
facetOf Early national period of United States history
Hamiltonian economic program
debate over federalism in the United States
followedBy Assumption Act implementation
Residence Act of 1790
hasCause controversy over federal assumption of state Revolutionary War debts
dispute over the permanent location of the U.S. national capital
hasEffect advancement of the funding and assumption components of Hamilton’s Report on Public Credit
assumption of state debts by the federal government
consolidation of Revolutionary War debts under the federal government
creation of a permanent federal district
enhancement of Alexander Hamilton’s financial program
establishment of a compromise capital between northern and southern states
foundation for the First Party System in U.S. politics
heightened political rivalry between Federalists and Democratic-Republicans
increased creditworthiness of the United States
increased political influence of the Treasury Department
location of the permanent national capital on the Potomac River
long-term shaping of the geographic and political center of the federal government
northern support for a southern location of the capital
passage of the Assumption Bill
passage of the Residence Act
placement of the capital in a slaveholding region
political alignment of southern support for federal debt assumption
precedent for political bargaining over federal policy and sectional interests
selection of a site for the future city of Washington, D.C.
strengthening of federal fiscal authority
temporary easing of sectional tensions between northern and southern states
hasParticipant Alexander Hamilton
James Madison
Thomas Jefferson
location United States
pointInTime 1790
significantPerson Alexander Hamilton
George Washington
James Madison
Thomas Jefferson
significantPlace New York City
Philadelphia
Potomac River


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